Choosing the right employee benefits and compensation for your business is one of the most important decisions that you will make in relation to your business. What your business can afford to pay is a big consideration when choosing worker benefits and pay. Equally important is the impact it will have on your ability to not only hire the best people but be able to retain them. Retention of employees is a serious consideration since training and retraining takes time and money. We’ll help business owners consider how to choose the best benefits and compensation package by outlining the benefits below.
When people are looking for a job, one of the things that attracts them to a particular company is the benefits. When deciding what benefits to offer to your employees keep in mind that not all benefits cost you money. Some of them have a lot of value to prospective and current employees while costing you little or nothing.
- Healthcare benefits Medical insurance is by far the most expensive benefit that you offer to your employees. The ACA mandates that employers with 50 or more full-time employees offer healthcare coverage. With the rise of high deductible healthcare plans offering health care saving accounts or reimbursement accounts is desirable.
- 401K Depending on the size of your business, there are several types of 401K plans that you can offer to our employees. Adding a matching contribution to the employee's contribution is a win-win for employers since it provides tax benefits and makes for happy employees.
- Pensions Employers that offer a pension are a dying breed which is exactly what makes them particularly attractive to employees. This is something to discuss with your benefits provider and tax professional.
- Life insurance This is a benefit that provides employees with peace of mind and when the choice is term insurance it costs a very minimal amount to the employer. Employees should be able to increase the amount they carry at their own expense.
- Paid time off (PTO) These days, many employers don't distinguish between vacation time , personal time and sick time. By calling it paid time off it allows employees more control over the time that they need to take off. This type of time off makes employees feel more valued and cost the employer nothing.
- Disability insurance Short and long term disability are important parts of most benefit packages.
- Telecommuting This is a benefit that doesn't cost you anything but it can be a big cost-saver for your employees since they don't have to commute.
- Job sharing This allows two employees to work part-time and share the job. It cost the employer less since part-time benefits are usually smaller and it benefits the employee by allowing them to work on their schedule.
When determining what salary to offer for different positions in your business it is important to know the make rate for these positions. Education, experience, knowledge required and skill level all play a part. To attract good employees you need to offer fair compensation. Employees need to feel as if there is room for growth with the company.
When it comes to employee benefits and compensation, a tax professional like Chandler & Knowles CPAs can be a big help in determining what will work best for your small business. Trust in our team of experts for professional business consulting matters nationwide.